New IAB Study Sheds Light on Huge Potential of In-Game Ads

New IAB Study Sheds Light on Huge Potential of In-Game Ads

Published: March 27, 2024

The U.S. Interactive Advertising Bureau (IAB) conducted a study shedding light on the increasing significance of in-game advertising as a top investment growth area alongside digital video.

Collaborating with Advertiser Perceptions on the study, titled “Changing the Game: How Games Advertising Powers Performance,” IAB surveyed 300 brand and agency marketing executives with experience in games advertising.

"This is the first large-scale quantitative analysis of brands and agencies with experience purchasing games advertising," IAB’s SVP for Research & Insights Jack Koch stated in a press release.

"The study found that advertisers view game advertising as a measurable, brand-safe medium that is effective across the entire consumer journey. Marketers can no longer afford to ignore this medium if they want to reach the more than 200 million U.S. consumers that play video games," he added.

Key Findings from the IAB Study

The study revealed compelling insights into the perceptions and intentions of advertisers regarding game advertising, positioning it as a brand-safe and effective channel for reaching consumers.

Key findings include:

  • 86% of the advertisers polled acknowledge the increasing significance of game advertising for their organizations and affirm it's brand-safe
  • 85% of respondents express confidence in their capacity to measure the effectiveness of game advertising
  • 90% of the agencies confirm in-game advertising’s efficacy in engaging “hard-to-reach audiences with relevant messaging”

The report emphasizes the versatility and effectiveness of in-game advertising, highlighting its ability to engage with a vast audience of about 213 million gamers in the U.S. alone.

This reach presents a significant opportunity for marketers to connect with a diverse and engaged demographic through immersive gaming experiences.

Future Growth and Collaboration in Game Advertising

The study points toward a promising future for game advertising, with projections indicating a substantial increase in ad spend within the gaming sector.

According to the study, ad spending in games is set to rise from $8.53 billion in 2024 to $11.49 billion by 2027, reflecting the growing confidence and interest in leveraging this dynamic advertising platform.

"Impressively, games advertising consistently performs well across all stages of the consumer journey, showcasing its potency compared to other media channels. We're excited to reveal where and how to harness its power in the marketing mix,” Koch shared.

IAB also released a set of guidelines and best practices for in-game advertising, aiming to foster collaboration between gaming and advertising professionals.

By promoting industry standards and facilitating cooperation, these guidelines seek to enhance the effectiveness and integrity of game advertising, ultimately benefiting both advertisers and consumers alike.

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